Daniela is a 25 percent partner in the JRD Partnership. On January 1, JRD makes a proportionate distribution of $16,000 cash, inventory with a $16,000 fair value (inside basis $8,000), and accounts receivable with a fair value of $8,000 (inside basis of $12,000) to Daniela. JRD has no liabilities at the date of the distribution. Daniela's basis in her JRD Partnership interest is $20,000. What is Daniela's basis in the distributed inventory and accounts receivable?
A. $2,000 inventory, $2,000 accounts receivable.
B. $0 inventory, $4,000 accounts receivable.
C. $8,000 inventory, $12,000 accounts receivable.
D. $16,000 inventory, $8,000 accounts receivable.
Answer: A
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